The Bank of Israel on Wednesday approved a plan for contactless cash withdrawals from automated teller machines (ATMs).
Under this plan, ATMs will gradually be upgraded to enable contactless cash withdrawals using payment cards and digital wallets, according to the BoI.
Currently, cash withdrawals from ATMs are carried out by inserting a card into the machine’s card reader. Following this change, withdrawals will also be possible through contactless technology and digital wallets installed on a smartphone, tablet or smartwatch.
According to the approved framework, implementation will take place in three stages: first, contactless withdrawals will be enabled at ATMs equipped with the required technology, for customers withdrawing from their own bank’s machines, by July 2027; second, new ATMs that do not support contactless cash withdrawals will not be installed starting June 2027; third, all ATMs will be upgraded to enable contactless withdrawals by the end of 2030.
Additionally, cross-bank contactless withdrawals will become available for all cardholders at any ATM supporting the technology by December 2027.
The BoI’s approval was given after a series of discussions held by the bank’s ATM Committee, a professional forum with representatives of banks, credit card firms and ATM enterprises.
“This is another important milestone in strengthening efficiency and innovation in the payments system,” the financial body quoted Ofer Golan, Head of the Payments and Clearing Department at the Bank of Israel, as saying.
“The contactless withdrawal service is expected to improve the level of service provided to the public and offer a more advanced, convenient, and accessible user experience. This move reflects the Bank of Israel’s ongoing commitment to improving Israel’s payments system and adapting it to an advanced technological environment,” Golan added.
